Mortgage of the day, refinancing rate: June 30, 2022
Mortgage rates have fluctuated slightly over the past few days, but haven’t seen dramatic changes so far this week. The 30-year fixed mortgage rate is hovering around 5.5% and rose slightly today.
As inflation rises and
works to control prices, mortgage rates could continue to rise. If the central bank is unable to bring inflation down, it may need to act more aggressively, which could push rates up significantly.
“Any persistent/clear signs of a wage or inflationary spiral will continue to drive more aggressive policies,” says Robert Heck, vice president of mortgages at Morty. “In these extreme scenarios, it is very possible that we will see mortgage rates head towards 7% or more, reflecting the inflationary environment of the 1980s. We are not close to being there yet, but it is not no longer impossible and inflation data will drive the market over the summer and the rest of the year.”
Mortgage rates today
Mortgage refinance rates today
Use our free mortgage calculator to see the impact of today’s mortgage rates on your monthly payments. By plugging in different rates and terms, you’ll also understand how much you’ll pay over the life of your mortgage.
Your estimated monthly payment
- pay one 25% a higher down payment would save you $8,916.08 on interest charges
- Lower the interest rate by 1% would save you $51,562.03
- Pay an extra fee $500 each month would reduce the term of the loan by 146 month
Click “More Details” for tips on how to save money on your long-term mortgage.
30-year fixed mortgage rates
The current average 30-year fixed mortgage rate is 5.81%, according to Freddie Mac. That’s up from 5.78% the previous week.
The 30-year fixed rate mortgage is the most common type of mortgage. With this type of mortgage, you’ll pay back what you borrowed over 30 years and your interest rate won’t change for the life of the loan.
The long 30-year term allows you to spread your payments out over a long period, which means you can keep your monthly payments lower and more manageable. The tradeoff is that you’ll get a higher rate than with shorter terms or adjustable rates.
15-year fixed mortgage rates
The average 15-year fixed mortgage rate is 4.92%, an increase from the previous week, according to data from Freddie Mac.
If you’re looking for the predictability that comes with a fixed rate, but are looking to spend less on interest over the life of your loan, a 15-year fixed rate mortgage might be right for you. Since these terms are shorter and have lower rates than 30-year fixed rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will have a higher monthly payment than you would with a longer term.
5/1 Adjustable Mortgage Rates
The average 5/1 adjustable mortgage rate is 4.41%, an increase from the previous week.
Variable rate mortgages can seem very attractive to borrowers when rates are high, as rates on these mortgages are generally lower than fixed mortgage rates. A 5/1 ARM is a 30 year mortgage. For the first five years, you will have a fixed rate. After that, your rate will adjust once a year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than you started with.
If you’re considering an ARM, make sure you understand how much your rate might increase each time it adjusts and how much it might ultimately increase over the life of the loan.
Are mortgage rates increasing?
Mortgage rates started to recover from historic lows in the second half of 2021 and could continue to rise throughout 2022. This is largely due to high levels of inflation and the policy response to rising prices .
Over the past 12 months, the consumer price index has increased by 8.6%. The Federal Reserve has been struggling to keep inflation under control and plans to raise the target federal funds rate four more times this year, following increases in March, May and June.
Although not directly tied to the federal funds rate, mortgage rates are often pushed higher by Fed rate hikes. As the central bank continues to tighten monetary policy to reduce inflation, mortgage rates are likely to remain high.
How can I find personalized mortgage rates?
Some mortgage lenders allow you to customize your mortgage rate on their websites by entering your
amount, postal code and
. The resulting rate is not fixed, but it can give you an idea of what you will pay.
If you’re ready to start buying homes, you can get pre-approved from a lender. The lender makes a firm credit application and reviews your financial details to lock in a mortgage rate.